Suppose that a cash flow for a certain yearn (F.) is not known with certainty, but three

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Suppose that a cash flow for a certain yearn (F.) is not known with certainty, but three subjective estimates can be made as follows.

L = $1,000, Mo = $1,500, H = $1,800 %3D

If F, is considered to have a triangular distribution over the interval (L, H) with M, identify the distribution parameters.

if F, has a beta distribution over (L, H] with shape parameters a and b,

a. Estimate the shape parameters a and b.

b. Compute the mean (μp) of the distribution. With the triangular distribution defined in generate two random deviates from the distribution when the uniform random deviates are given at U, = 0.25 and U, = 0.85, respectively.

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank,Anthony Tarquin

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Posted Date: Jun 15, 2020 07:15 AM

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Suppose that a cash flow for a certain yearn (F.) is not known with certainty, but three

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a The distribution parameters are L 1000 M 1500 and H 1800 The beta distribution shape pa... View the full answer

Engineering Economy

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